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Sonny's BBQ Company recently issued $85.00 par-value preferred stock that pays an annual dividend of $9.00. Analysts estimate that the stock has a beta of

Sonny's BBQ Company recently issued $85.00 par-value preferred stock that pays an annual dividend of $9.00. Analysts estimate that the stock has a beta of 1.01. The current T-bill rate is 2.40%. The S&P 500's expected return (RM) is 12.10%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?

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